LexThe Kerala Motor Transport workers Welfare fund Board 1985 act 21 & Act 23 ,2005
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ACT 21 OF 1985
THE KERALA MOTOR TRANSPORT WORKERS WELFARE FUND
ACT, 1985
An Act to provide for the constitution of a Fund to promote the welfare of
motor transport workers in the State of Kerala.
Preamble:- WHERE AS it is expedient to provide for the constitution of a
Fund to promote the welfare of motor transport wor kers in the State of
Kerala. BE to enacted in the Thirty sixth Year of t he Republic of India as
follows:-
1. Short title, extent and commencement:- (1) This act may be called The
Kerala Motor Transport Workers Welfare Fund Act, 1985
(2) It extends to whole of the State of Kerala.
(3)It shall be deemed to have come into force from the 27
th day of June,
1985
2. Definitions:- In this Act, unless the context otherwise requires,-
(a) “Board” means The Kerala Motor Transport Work ers Welfare Fund
Board constituted under section 6;
(b) “Chief Executive Officer” means the Chief Execu tive Officer
appointed under sub-section (1) of section (7);
(c) “contribution” means a contribution payable in respect of a member
under the scheme;
(d) “employee” means a person who is employed for w ages in a Motor
Transport undertaking directly or through an agency to work in a
professional capacity on a transport vehicle or to attend to duties in
connection with the arrival, departure, loading or unloading of such
transport vehicle and includes a driver, conductor, cleaner, station staff,
line checking staff, booking clerk, cash clerk, dep ot clerk, time keeper,
watchman, or attendant,
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*(e) “employer” means in relation to any motor tran sport undertaking,
the registered owner or the person who, or the auth ority which, has the
ultimate control over the affairs of the motor tran sport undertaking, and
where the said affairs are entrusted to any other p erson whether called a
manager, managing director, managing agent, or by any other name, such
other person;
(f) “Fund” means the Kerala Motor Transport Workers Welfare Fund
established under the scheme;
(g) “member’ means the member of the Fund and incl udes any person
eligible to become a member of the Fund;
(h) “motor transport undertaking” means a motor tra nsport undertaking
engaged in carrying passengers or goods or both by road for hire or
reward and includes a private carrier;
(i) “prescribed” means prescribed by rules made by this Act;
*(ia) “quantum” means a fixed amount of welfare fun d contribution
payable to the fund by the employer, employee and s elf employed person
as may be specified in the scheme;
(j) “scheme” means the scheme framed under this Act ;
*(ja) “self employed person” means a person other t han an employee
who is engaged in the profession of a motor transpo rt undertaking by
actually operating the vehicle and depending mainly on such a motor
transport undertaking for his lively hood;
*omitted
(l) all other words and expression used but not def ined in this Act and
defined in the Motor Vehicles Act, 1939 (Central Ac t 4 of 1939), shall
have the meanings respectively assigned to them in that Act
3.Motor Transport Workers Welfare Fund;- (1) The Go vernment may by
notification in the Gazette, frame a scheme to be h old the Kerala Motor
Transport workers Fund Scheme for the establishment of a Fund under
this Act for employees and their shall be establish ed, as soon as may be
after the framing of the scheme, a fund in accordan ce with the provisions
of this Act and the scheme.
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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(2) The fund shall vest in, and be administered by, the Board
(3) Subject to the provisions of this Act, the scheme may provide for all
or any of the matters specified in the Schedule.
4. * Contribution to the Fund;- (1) The contribution pa yable by
employee to the fund shall be such quantum of each type of motor
transport undertaking as may be specified in the scheme.
(2) The contribution payable by the employer and the self employed
person shall be such quantum as may be specified in the Scheme.
(3) The quantum under sub-sections (1) and (2) shall be fixed taking
into account the average number of man power required for
Operating the motor transport undertaking.
(4) The contribution payable by the employer, employee and self
Employed person shall be subject to revision from time to time.
Provided that nothing in the section shall apply to a Motor Transport
undertaking to which the provisions of Employees Pr ovident Funds
and Miscellaneous Provisions Act, 1952 (Central Act 19 of 1952) or
the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) apply.
5. Modification of scheme :- (1) The Government may, by notification in
the Gazette, add to, amend or vary the scheme eithe r prospectively or
retrospectively
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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(2) Every notification under sub – section (1) shal l be laid, as soon as
may be after it issued, before the Legislative Asse mble while it is in
session for a total period of fourteen days which m ay by comprised in
one session or in two successive sessions, and if, before the expiry of the
session in which it is so laid or the session immed iately following, the
Legislative Assemble makes any modification in the notification or
decides that the notification should not be issued, the notification shall
thereafter have effect only in such modified from o r be of no effect, as
the case may be so however that any such modificati on or annulment
shall be without prejudice to the validity of anyth ing previously done
under that notification.
(6) Constitution of Board :- (1) The Government may , by notification in
the Gazette, constitute with effect form such date as may be specified in
such notification a Board to it be called the Keral a Motor Transport
Workers’ Welfare Fund Board for the administration of the Fund and to
supervise or carry out activities financed form the Fund.
(2) The Board shall be a body corporate by the name aforesaid, having
perpetual succession and a common seal and shall by the said name sue
and be sued.
(3) The Board shall consist of such number of Direc tors as my be
appointed by the Government and they shall be chosen in such manner as
may be provided for in the scheme.
Provided that the Board shall include an equal nu mber of Directors
representing the Government, the employers and the employees.
(4) One of the Directors of the Board shall be appo inted by the
Government to be its Chairman.
(5) The Government shall publish the names of all t he Directors of the
Board in the Gazette.
(6) The Board shall administer the Fund in such man ner as may be
specified in the scheme.
(7) The Board may, with the previous approval of th e Government,
delegate to its Chairman or to the Chief Executive officer or to any
officer appointed under sub section (1) of section 7 such or its powers
and functions under this Act or the scheme as it m ay consider, necessary
for the efficient administration of the Fund, subject to such restriction and
conditions, if any, as it may specify:
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Provided that no delegation shall be made under th is sub section
unless all the members present support such delegation;
(7) Appointment of Officers ;- (1) The Government m ay appoint a Chief
Executive Officer and such number of other officers and staff as they
consider necessary to assist the Board in the disch arge of its functions
and duties under this Act.
(2) The Chief Executive Officer and the other offic ers appointed under
sub section (1) shall exercise such powers and disc harge such duties as
may be prescribed,
(3) The method of recruitment, salary and allowanc es, discipline and
other conditions of service of the Chief Executive Officer and the other
officers and staff appointed under sub section (1) shall be such as may be
prescribed.
* 8 Determination of amount due :- (1) The Chief Exe cutive officer any
other officer appointed under sub section (1) of se ction 7 authorised by
hin in this behalf may, by order, determine the amo unt due under the
provisions of this Act or of the Scheme form the em ployer, Employee
and self employed person and if the amount due is n ot paid on or before
the due date, he shall issue a demand notice to the defaulter showing the
amount of arrears.
(2) Any person aggrieved by the determination of ar rears under sub
section (1) may file a review petition before the a uthority who had
determined then arrears, showing detailed facts and reasons for reviewing
the original determination within fifteen days of r eceipt of demand
notice.
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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(3) A review petition filed under sub section (2) s hall be disposed of
by the authority within a period of thirty days from the date of its receipt
(4) Any person aggrieved by an order under sub sect ion (3) may prefer
are appeal before the District Labor Officer of th e concerned district and
it staff be disposed of by him within a period of s ixty days form the date
of its receipt.
(5) If the amount of arrears in dispute exceeds rup ees one lakh, any
person aggrieved by an order under sub section (4) may prefer a second
appeal before the Board and it shall be disposed of within a period of
sixty days from the date of its receipt.
(6) Every order passed under sub section (4) or sub section (5) as the case
may be, shall be final.
(7) No appeal under this section shall be entertain ed unless fifty per cent
of the amount in accordance with the order against which the appeal has
been preferred is paid;
(8) If the appellate authority in an appeal decides that the amount paid is
in excess of what is due from the appellant, it may by order, direct for the
refund of the excess amount.
(9) An officer or authority exercising the power of appeal under sub
section (5) of section 8 of the Kerala Motor Transp ort Workers Welfare
Fund Act 1985, immediately before the commencement of the Kerala
Motor Transport Workers Welfare Fund (Amendment) Ac t 2005 shall
continue to exercise such powers, in respect of the cases pending before
such officer or authority.
* 8 A Production of receipt of remittance of welfare fund contribution –
Notwithstanding anything contained in any other law for the time being
in force every registered owner or person having po ssession or control of
a motor vehicle in respect of a motor transport und ertaking liable to pay
contribution ( other than auto rickshaws covered un der the provisions of
the kerala Auto rickshaw workers welfare Fund Schem e 1991) shall, at
the time of making payment of the tax under the Ker ala Motor Vehicles
Taxation Act 1976 (19 of 1976) produce before the T axation Officer the
receipt of remittance of the contribution to the fu nd due up to the
preceding month,
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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*9. Remittance of monthly contribution :- (1) Every employer, employee
and self employed person shall pay the contribution due from him every
month as provided fro in the scheme.
(2) The monthly contribution shall become payable o n or before the 7
th
day of the succeeding month.
*10. Mode of recovery of moneys due from the employ er employee and
self employed person – (1) The amount of arrears fo r which demand
notice has been issued under sub section (1) of sec tion 8 shall by
recovered together with interest thereon at the rat e of 9 per cent per
annum in the same manner as an arrear of public revenue due on land.
(2) Not with standing anything contained in any oth er provisions of this
Act or in any other law for the time being in force , where an employer
transfers his vehicle before paying any amount due under this Act in
respect of the vehicle, the liability wherefore acc rued before the date of
the transfer, such amount shall be a charge on the vehicle so transferred.
11. Protection against attachment :- (1) The amount standing to the credit
of any member in the fund shall not in any way be c apable of being
assigned or charged and shall not be liable to atta chment under any
decree or order of any court in respect of any debt or liability incurred by
the member , and no receiver appointed under the In solvency Act 1955
(II of 1956), Shall be entitled to or have any claim on any such amount.
(2) Any amount standing to the credit of a member in the Fund at the
time of his death and payable to his nominee under the scheme shall,
subject to any deduction authorized by the scheme, vest in the nominee
and shall be free from any debt or other liability incurred by the deceased
or the nominee before the death of the member .
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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12. Priority of payment of contribution of over ot her debts :- Where any
employer is adjudicated insolvent or the employer i s a company and an
order for winding up of such company is made, the a mount due from the
employer under this Act or the scheme shall, where the liability therefore
has accrued before the order for adjudication or wi nding up is made, be
deemed to be included among the debts which under s ection 64 of the
Insolvency Act, 1955 (II of 1956) or under section 530 of the Companies
Act 1956 (Central Act 1 of 1956), are to be paid in priority to all other
debts in the distribution of the property of the in solvent or the assets of
the company being wound up as the case may be.
*12 A Registration and membership :- Every employee or self employed
person shall register himself with the Board as a m ember of the fund
within six months of commencement of his service in a motor transport
undertaking and obtain identity card in such manner as may be provide or
in the scheme,
Provided that every employee of self employed pers on who has bee
already registered as a member of the fund as on the date of
commencement of the Kerala Motor Transport Workers Welfare Fund
(Amendment ) Act 2005 shall get himself re- registered with the Board as
specified in the Scheme.
13. Employer not to reduce wages etc :- No employe r shall by reason
only of his liability or the payment of any contri bution to the Fund
reduce whether directly or indirectly, the wages of any employee to
whom the scheme applies or the total quantum of ben efits to which the
employee is entitled under the terms of his employm ent express or
implied
14. Directors of Board etc. to be public servants :- Every Director of the
Board, the Chief Executive Officer and every officer appointed under sub
section (i) of section 7 shall be deemed to be a pu blic servant within the
meaning of section 21 of the Indian penal code (Cen tral Act 45 of 1860)
*15. Penalties:- (1) Whoever for the purpose of av oiding any payment to
be made by him under this Act or under the scheme o r of enabling any
other person to avoid any payment to be made under this Act or the
scheme knowingly makes are causes to be made by any false statement or
false fore representation shall be punishable with imprisonment fro a
term which may extend to six months, or with fine w hich may extend to
Five thousand rupees, or with both.
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(2) Whoever contravenes or makes default in complyi ng with
any of the provisions of this Act or of the scheme shall if no other penalty
is else where provided by or under this Act for suc h contravention or non
compliance be punishable with imprisonment for a te rm which may
extend to three months or with fine which may exten d to Two thousand
five hundred rupees or with both.
(3) No court in fervor to that of a Judicial Magist rate of the First Class
shall try any offence punishable under this Act.
(4) No court shall take cognizance of any offence p unishable under this
Act except on a report in writing of the facts cons tituting such offence
made with the pervious sanction of the Chief Executive Officer.
16. Enhanced punishment for default in payment of e mployees
contributions already deducted :- (1) Whoever make s default in the
payment of the employees share of the contribution to the Fund after
having deducted it from the wages of the employees in accordance with
the provisions of this Act or the scheme, shall be punishable with
imprisonment for a term which may extend to one ye ar, but which shall
not be less than three months, and with fine which may extend to four
thousand rupees;
Provided that the court may, for any adequate and special reasons to
be mentioned in the judgment impose a sentence of i mprisonment for a
tern of less than three months.
(2) Not with standing anything contained in the Cod e of Criminal
procedure 1973 ( Central Act 2 of 1974) an offence under sub section (1)
shall be cognizable
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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17. Enhanced punishment for second or subsequent of fence: -
Whoever, having been convicted by a court of an off ence punishable
under this Act, again commits the same offence shal l be punishable for
every such subsequent offence with imprisonment for a term which may
extend to one year, but which shall not be less th an three months, and
with fine which may extend to four thousand rupees.
Provided that the court may, for any adequate and special reasons to
be mentioned in the judgment, impose a sentence of imprisonment for a
term of less than three months,
18. Offence by companies:- (1) Where an offence under this Act has been
committed by a company, every person who at the tim e the offence was
committed was in charge of, and was responsible to, the company for the
conduct of the business of the company as well as t he company, shall be
deemed to be guilty of the offence and shall be lia ble to be proceeded
against and punished accordingly.
Provided that nothing contained in this sub sectio n shall render any
such person liable to any punishment, if the proves that the offence was
committed without his knowledge or that he has exer cised all due
diligence to prevent the commission of such offence.
(2) Not with standing anything contained in sub sec tion (1) where any
offence under this Act has been committed by a company and it is proved
that the offence has been committed with the consen t or connivance of,
or is attributable to, any neglect on the part of a ny director, manager,
secretary or other officer of the company, such dir ector manager
secretary or other officer shall be deemed to be gu ilty of that offence and
shall be liable to be proceeded against and punished accordingly.
Explanation: - For the purposes of this section
(a) “Company” means any body corporate and includes a f irm or other
association of individuals and
(b) Director in relation to a firm means a partner in the firm
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19. Directions by Government :- (1) The Government may, after
consultation with the Board give to the Board gener al instructions to be
followed by the Board.
(2) In the exercise of its powers and performance o f its duties under this act,
the Board shall not depart form any general instruc tion issued under sub
section (1), except with the previous permission of the Government.
20. Power to order inquiry :- (1) The Government ma y at any time, appoint
any person to inquire into the working of the Board and to submit a report to
the Government
(2) The Board shall give the person so appointed a ll facilities for the proper
conduct of the inquiry and furnished to him such do cuments, accounts and
information in the possession of the Board as the may require,
21. Power to supersede the Board:- (1) If, on consi deration of the report
under section 20 or otherwise the Government are of opinion that the Board
has persistently made default in the performance of the duties imposed on it
by or under the provisions of this act or the schem e or has exceeded or
abused its powers, the Government may, by notificat ion in the Gazette,
supersede the Board for such period not exceeding s ix months as my be
specified in the notification.
Provided that, before issuing a notification under this sub section the
Government shall give a reasonable opportunity to t he Board to show cause
why it should not be superseded and shall consider the explanations and
objections, if any, of the Board.
(2) Upon the publication of a notification under su b section (1) :- (a) All the
Directors of the Board shall. As from the date of s uch publication vacate
their offices as such directors
(b) All the powers and duties, which may be exercis ed or performed by the
Board shall, during the period of super session, be exercised or performed by
such officer of officers as may be specified in the notification
(c) All funds and other properties vested in the Bo ard shall, during the
period of super session, vest in the Government.
(3) On the expiration of the period of super sessio n the Government shall
reconstitute the Board in the manner provided in section 6
22. Protection of action taken in good faith :- No suit or other legal
proceeding shall lie against any director of the Bo ard or the Chief Executive
Officer or any other person in respect of anything which is in good faith
done or intended to be done under this Act or any r ule made there under or
under the scheme
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23. Bar of jurisdiction of civil courts :- No civil court shall have
jurisdiction to settle, decide or deal with any que stion or to determine any
matter which is by or under this act or the scheme required to be settled,
decided or dealt with or to be determined by the go vernment or the Board or
the Chief Executive Officer or any other officer ap pointed under sub section
(i) of section 7
24. Special provisions for transfer and vesting of welfare fund established by
custom or agreement :- All welfare funds establishe d either by custom or
agreement before the date of commencement of this A ct and standing to the
credit of the employees on such date shall, not wit h standing anything to the
contrary contained in any law for the time being in force or in any deed or
other instrument, stand transferred to, and vest in the Fund established under
section 3 and shall be credited to the accounts of the employees entitled
there to the Fund.
*25. Power to make rules :- (1) The Government may, by notification in the
Gazette either prospectively or retrospectively mak e rules for the purpose of
carrying into effect the provisions of this Act.
(2) Every rule made under this Act shall be laid as soon as may be after it is
made, before the Legislative Assembly while it is i n session for a total
period of fourteen day which may by comprised in on e session or in two
successive sessions, and if, before the expiry of t he session in which it is so
laid or the session immediately following, the Legi slative Assembly makes
any modification in the rule or deciders that the r ule should not be made, the
rule shall thereafter have effect only in such modi fied form or be of no
effect, as the case may be so however that any such modification or
annulment shall be without prejudice to the validit y of anything previously
done under that rule,
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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*26. Repeal and saving :- (1) The Kerala Motor Tran sport Workers Welfare
Fund Ordinance, 2005 (8 of 2005) except section 4 t here of is hereby
repealed .
(2) Not with standing such repeal, anything done or any action taken under
the principal Act as amended by the said Ordinance shall be deemed to have
been done or taken under the principal Act as amended by this act.
SCHEDULE
[See reaction 3(3) 1 ]
Matters for which provision may be made in the scheme
1. The time and manner in which contributions shall be made to the
Fund by employers and by, or on behalf of employees (whether
employed directly, or through an agency ) the contr ibutions which an
employee may make under section 4 and the manner in which such
contributions may be recovered,
2. The payment by the employer of such sum of money as may be
necessary to meet the cost of administering the Fun d and the rate at
which and the manner in which such payment shall be made;
3. The constitution of any committee for assisting the Board;
4. The manner in which account shall be kept, the inve stment of money
belonging to the Fund in accordance with any direct ions issued or
conditions specified by the Government, the prepara tion of the
budget, the audit of accounts and the submission of reports to the
Government.
5. The conditions under which withdrawals from the Fun d may by
permitted and any deduction or forfeiture may by ma de and the
maximum amount of such deduction or for feaiure.
6. The fixation by the Government in consultation with the Board of the
rate of interest payable to members.
7. The from in which an employee shall furnish particulars about himself
and his family whenever required.
8. The nomination of a person to receive the amount st anding to the
credit of a member after his death and the cancella tion or variation of
such nomination,
9. The registers and records to be maintained with res pect to employees
and the returns to be furnished by the employers or agencies.
* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)
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10. The form or design of any identity card, token or dices for the
purpose of identifying any employee, and for issue custody and
replacement thereof
11. The fees to be levied for any of the purposes spec ified in this
schedule
12. The conditions under which a member may be permitte d to pay
premium on life insurance reform the Fund.
13. The further powers, if any, which may be exercised by the officers
appointed under this Act.
14. The manner in which the Directors of the Board shal l be chosen and
appointed.
15. The manner in which any welfare fund vested under section 24 is to
be brought and credited to the accounts of the empl oyees entitled
there to in the Fund.
16. * The rate of Welfare fund payable to members and t he conditions for
such payment
17. The conditions under which any amount due to the Bo ard may be
written off.
18. Any other matter which is to be provided for in th e scheme or which
may be necessary or proper for the purpose of imple menting the
scheme.
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* Amendment Act 2005 (No 13285/Leg. C2/05/Law dated 15.8.2005)